Subsidiary Liability of the Persons, Controlling a Debtor, and Compensation of Damages. Correlation of the Institutions

This work is devoted to the research of the correlation of two institutions in bankruptcy cases: subsidiary liability and compensation of damages, the criteria for the delineation of which are absent in the current legislation. As a result of five-stage comparative legal research and analysis of current court practice, the author concludes that there are significant differences between two institutions (the subject to compensation for the damages, limitation periods, and the amount of liability) notwithstanding the general similarity of its legal nature. The author also arrives the idea that there are uncertainties and contradictions of some legal provisions, that can be eliminated by amending the Russian Bankruptcy Law. In the author’s opinion “judicial law-making” is not always reasonable and deserves a critical attitude. The final part of the work presents the author’s own recommendations on establishing a circle of persons controlling the debtor, collecting evidence in the subsidiary liability cases, applying provisional measures taking into account the preference of the institution of subsidiary liability as one of the ways to satisfy the interests of creditors totally.